75R10356 PB-F
By Haggerty H.B. No. 1465
Substitute the following for H.B. No. 1465:
By Pickett C.S.H.B. No. 1465
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of staff leasing services companies;
1-3 providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 91.001, Labor Code, is amended to read as
1-6 follows:
1-7 Sec. 91.001. DEFINITIONS. In this chapter:
1-8 (1) "Applicant" means a business entity applying for a
1-9 license or the renewal of a license under this chapter.
1-10 (2) "Assigned employee" means an [a full-time]
1-11 employee under a staff leasing services arrangement [whose normal
1-12 work week is at least 25 hours and] whose work is performed in this
1-13 state. The term does not include an employee hired to support or
1-14 supplement a client company's work force in a special work
1-15 situation, including:
1-16 (A) an employee absence;
1-17 (B) a temporary skill shortage;
1-18 (C) a seasonal workload; or
1-19 (D) a special assignment or project.
1-20 (3) "Client company" means a person that contracts
1-21 with a license holder and is assigned employees by the license
1-22 holder under that contract.
1-23 (4) "Commission" means the Texas Commission of
1-24 Licensing and Regulation.
2-1 (5) "Commissioner" means the commissioner of licensing
2-2 and regulation.
2-3 (6) "Common ownership" means a direct or indirect
2-4 ownership interest in excess of 33-1/3 percent. The term includes
2-5 ownership through subsidiaries or affiliates.
2-6 (7) "Controlling person" means an individual who:
2-7 (A) possesses direct or indirect control of 25
2-8 percent [an officer or director of a corporation that offers or
2-9 proposes to offer staff leasing services, a shareholder holding 10
2-10 percent] or more of the voting securities [stock] of a corporation
2-11 that offers or proposes to offer staff leasing services [, or a
2-12 partner of a partnership that offers or proposes to offer staff
2-13 leasing services]; [or]
2-14 (B) possesses the authority to set policy and
2-15 direct management of a company that offers or proposes to offer
2-16 staff leasing services; or
2-17 (C) is employed, appointed, or authorized by a
2-18 company that offers or proposes to offer staff leasing services to
2-19 enter into a contract with a client company on behalf of the
2-20 company [an individual who directly or indirectly has the power to
2-21 direct or cause the direction of the management or policies of a
2-22 company that offers or proposes to offer staff leasing services
2-23 through:]
2-24 [(i) the ownership of voting securities;]
2-25 [(ii) contract; or]
2-26 [(iii) another means].
2-27 (8) [(7)] "Department" means the Texas Department of
3-1 Licensing and Regulation.
3-2 (9) "Governmental entity" means this state, or an
3-3 agency, county, or municipality of this state.
3-4 (10) [(8)] "Independent contractor" means a person who
3-5 contracts to perform work or provide a service for the benefit of
3-6 another and who:
3-7 (A) is paid by the job, not by the hour or some
3-8 other time-measured basis;
3-9 (B) is free to hire as many helpers as the
3-10 person desires and to determine what each helper will be paid; and
3-11 (C) is free to work for other contractors, or to
3-12 send helpers to work for other contractors, while under contract to
3-13 the hiring employer.
3-14 (11) [(9)] "License holder" means a person licensed
3-15 under this chapter to provide staff leasing services.
3-16 (12) "Net worth" of an applicant means the applicant's
3-17 assets minus the applicant's liabilities, as shown on the
3-18 applicant's financial statement or most recent federal tax return,
3-19 plus the sum of any guarantees, letters of credit, or securities
3-20 that may be submitted to the department.
3-21 (13) "Offer" means a proposal for acceptance or
3-22 rejection that is made in such a form that the promises or
3-23 performance to be rendered by each party are reasonably certain.
3-24 (14) [(10) "Public company" means a corporation whose
3-25 shares are listed on the New York Stock Exchange and that has
3-26 total assets that exceed $1 billion.]
3-27 [(11)] "Staff leasing services" means an arrangement
4-1 by which employees of a license holder are assigned to work at a
4-2 client company and in which employment responsibilities are in fact
4-3 shared by the license holder and the client company, the employee's
4-4 assignment is intended to be of a long-term or continuing nature,
4-5 rather than temporary or seasonal in nature, and a majority of the
4-6 work force at a client company worksite or a specialized group
4-7 within that work force consists of assigned employees of the
4-8 license holder. The term does not include:
4-9 (A) [a] temporary help [service];
4-10 (B) an independent contractor;
4-11 (C) the provision of services that otherwise
4-12 meet the definition of "staff leasing services" by one person
4-13 solely to other persons who are related to the service provider by
4-14 common ownership [a public company or any other person in which
4-15 that public company has a direct or indirect ownership interest in
4-16 excess of 33-1/3 percent, including ownership through subsidiaries
4-17 and affiliates]; or
4-18 (D) a temporary common worker employer as
4-19 defined by Chapter 92.
4-20 (15) [(12)] "Staff leasing services company" means a
4-21 business entity that offers staff leasing services.
4-22 [(13) "Temporary employee" means an employee hired for
4-23 a temporary help service.]
4-24 (16) [(14)] "Temporary help [service]" means an
4-25 arrangement by which an organization hires its own employees and
4-26 assigns them to a client to support or supplement the client's work
4-27 force in a special work situation, including:
5-1 (A) an employee absence;
5-2 (B) a temporary skill shortage;
5-3 (C) a seasonal workload; or
5-4 (D) a special assignment or project.
5-5 SECTION 2. Sections 91.002(a) and (c), Labor Code, are
5-6 amended to read as follows:
5-7 (a) The commissioner shall adopt rules as necessary to
5-8 administer this chapter[, including rules for the form and content
5-9 of a license issued under this chapter and a notice required under
5-10 Section 91.045].
5-11 (c) Notwithstanding any other provision of this chapter,
5-12 nothing in this [This] chapter preempts [does not preempt] the
5-13 existing statutory or rulemaking authority of any other state
5-14 agency or entity to regulate staff leasing services in a manner
5-15 consistent with the statutory authority of that state agency or
5-16 entity.
5-17 SECTION 3. Section 91.003(b), Labor Code, is amended to read
5-18 as follows:
5-19 (b) In particular, the Texas Workforce [Employment]
5-20 Commission, the Texas Department of Insurance, the Texas Workers'
5-21 Compensation Commission, and the attorney general's office shall
5-22 assist in the implementation of this chapter and shall provide
5-23 information to the department on request.
5-24 SECTION 4. Section 91.004, Labor Code, is amended by adding
5-25 Subsection (c) to read as follows:
5-26 (c) A license holder is not engaged in the unauthorized
5-27 practice of an occupation, trade, or profession that is licensed,
6-1 certified, or otherwise regulated by a governmental entity solely
6-2 by entering into a staff leasing agreement with a client company
6-3 and assigned employees.
6-4 SECTION 5. Section 91.012, Labor Code, is amended to read as
6-5 follows:
6-6 Sec. 91.012. GENERAL LICENSE REQUIREMENTS. [(a)] To be
6-7 qualified to serve as a controlling person of a license holder
6-8 under this chapter, that person must be at least 18 years of age[,
6-9 be of good moral character,] and have educational, managerial, or
6-10 business experience relevant to:
6-11 (1) operation of a business entity offering staff
6-12 leasing services; or
6-13 (2) service as a controlling person of a staff leasing
6-14 services company.
6-15 [(b) For purposes of this section, "good moral character"
6-16 means a personal history of honesty, trustworthiness, fairness, a
6-17 good reputation for fair dealing, and respect for the rights of
6-18 others and for the laws of this state and nation.]
6-19 SECTION 6. Section 91.013(a), Labor Code, is amended to read
6-20 as follows:
6-21 (a) On receipt of an original application for a license, the
6-22 [The] department shall conduct a thorough background investigation
6-23 of each individual applicant and of each controlling person of each
6-24 applicant to determine whether that applicant or controlling person
6-25 is qualified under this chapter. The department may deny an
6-26 application for the issuance [or renewal] of a license if the
6-27 department finds that an applicant or a controlling person is not
7-1 qualified under this chapter. The investigation must include:
7-2 (1) the submission of fingerprints for processing
7-3 through appropriate local, state, and federal law enforcement
7-4 agencies; and
7-5 (2) examination by the department of police or other
7-6 law enforcement records maintained by local, state, or federal law
7-7 enforcement agencies.
7-8 SECTION 7. Sections 91.014(b) and (d), Labor Code, are
7-9 amended to read as follows:
7-10 (b) The applicant may demonstrate the applicant's net worth
7-11 to the department by providing the department with the applicant's
7-12 financial statement or a copy of the applicant's most recent
7-13 federal tax return. The applicant may also satisfy the net worth
7-14 requirement through guarantees, letters of credit, a bond in an
7-15 amount that demonstrates compliance with the requirements of
7-16 Subsection (a), or other security acceptable to the department. A
7-17 guaranty is not acceptable to satisfy this subsection unless the
7-18 applicant submits sufficient evidence to satisfy the department
7-19 that the guarantor has adequate resources to satisfy the
7-20 obligations of the guaranty.
7-21 (d) A document submitted to establish net worth must show
7-22 the net worth on a date not earlier than nine [six] months before
7-23 the date on which the application is submitted. A document
7-24 submitted to establish net worth must be prepared or certified by
7-25 an independent certified public accountant. Information submitted
7-26 to or maintained by the department is subject to Chapter 552,
7-27 Government Code, other than information related to:
8-1 (1) identification of client companies;
8-2 (2) [supplied about] net worth;
8-3 (3) financial statements; or
8-4 (4) [, including copies of] federal tax returns[, is
8-5 proprietary and confidential and is exempt from disclosure to
8-6 persons other than other governmental agencies having a reasonable,
8-7 legitimate purpose for obtaining the information].
8-8 SECTION 8. Section 91.015, Labor Code, is amended to read as
8-9 follows:
8-10 Sec. 91.015. LICENSE APPLICATION. (a) To receive a staff
8-11 leasing services company original [or renewal] license, a person
8-12 shall [must] file with the department a written application
8-13 accompanied by the application fee.
8-14 (b) The department shall [may] require an applicant for a
8-15 license to provide information [and certifications] necessary to
8-16 determine that the applicant meets the licensing requirements of
8-17 this chapter. The department shall [may] also require the
8-18 applicant to provide information [and certifications] necessary to
8-19 determine whether individuals affiliated with the applicant are
8-20 qualified to serve as controlling persons.
8-21 (c) Before denying a license application, the department
8-22 shall provide written notice to the applicant specifying the
8-23 reasons for the denial. [An applicant or license holder is
8-24 ineligible for a license for two years after the date of a final
8-25 department action on the denial or revocation of a license applied
8-26 for or issued under this chapter. This restriction does not apply
8-27 to a denial or revocation of a license because of:]
9-1 [(1) an inadvertent error or omission in the
9-2 application if that error or omission is promptly corrected;]
9-3 [(2) insufficient experience documented to the
9-4 department at the time of the previous application; or]
9-5 [(3) the inability of the department to complete the
9-6 criminal background investigation required under Section 91.013
9-7 because of insufficient information received from a local, state,
9-8 or federal law enforcement agency.]
9-9 (d) An order of the department that denies, revokes, or
9-10 refuses to renew a license because of the alleged unsuitability of
9-11 a controlling person must provide that the applicant or license
9-12 holder may avoid the adverse action by removing that person as a
9-13 controlling person. Removal, demotion, or discharge of a
9-14 controlling person in response to an order of the department of the
9-15 alleged unsuitability of that controlling person is an affirmative
9-16 defense to any claim made by that individual based on the removal,
9-17 demotion, or discharge. [An applicant or license holder is
9-18 ineligible for a license for one year after the date of a final
9-19 department action on the denial or revocation of a license applied
9-20 for or issued under this chapter if the reason for the denial or
9-21 revocation was that one or more of the controlling persons
9-22 affiliated with the applicant or license holder was determined by
9-23 the department to be unsuitable and each unsuitable controlling
9-24 person has in fact ceased to be a controlling person of the
9-25 applicant or license holder.]
9-26 (e) A controlling person who has been evaluated by the
9-27 department under this chapter is not required to be reevaluated if
10-1 that person changes the person's affiliation or employment from one
10-2 applicant or license holder to another applicant or license holder.
10-3 SECTION 9. Section 91.016, Labor Code, is amended to read as
10-4 follows:
10-5 Sec. 91.016. LICENSE ISSUANCE; TERM. (a) The department
10-6 shall issue a license to an applicant who the department determines
10-7 has met [determined to meet] the requirements of this chapter. The
10-8 department shall notify an applicant of any deficiency in the
10-9 application not later than the 30th day after the date on which the
10-10 department receives the application forms. The department shall
10-11 issue the license not later than the 90th day after the date on
10-12 which the completed application is filed with the department.
10-13 (b) A license issued or renewed by the department under this
10-14 chapter is valid for two years from the date of the issuance or
10-15 renewal [one year]. The department shall renew a license on
10-16 receipt of a complete renewal application form [approved by the
10-17 department] and payment of the license [required] renewal fee
10-18 [fees].
10-19 (c) Each applicant or license holder shall disclose to the
10-20 department the addition of a new controlling person not later than
10-21 the 45th day after the date on which the person assumes the duties
10-22 of a controlling person. That person may serve as a controlling
10-23 person while the department is conducting any necessary
10-24 investigation. If the department determines not to approve the new
10-25 controlling person, the department shall notify the applicant or
10-26 license holder and that controlling person at least 20 days before
10-27 taking action against the applicant or license holder.
11-1 SECTION 10. Section 91.017(a), Labor Code, is amended to
11-2 read as follows:
11-3 (a) Each applicant for an original or renewal staff leasing
11-4 services company license shall pay to the department before [on]
11-5 the issuance of the license or license renewal a fee set by the
11-6 commission by rule in an amount not to exceed $6,000 for the
11-7 two-year license period [$3,000].
11-8 SECTION 11. Section 91.018, Labor Code, is amended by adding
11-9 Subsections (d)-(f) to read as follows:
11-10 (d) A license holder may amend the name specified in its
11-11 license to add a trade name, trademark, service mark, or parent
11-12 company name. An amendment made under this subsection must comply
11-13 with the requirements imposed under Subsection (a). The department
11-14 may charge a fee not to exceed $50 for processing of such an
11-15 amendment.
11-16 (e) A license holder offering staff leasing services in more
11-17 than one state may advertise in this state using the name of its
11-18 parent company or under a trade name, trademark, or service mark.
11-19 The trade name, trademark, service mark, or parent company name
11-20 must be listed on the license in addition to the licensed name used
11-21 by the license holder in this state.
11-22 (f) Each written proposal provided to a prospective client
11-23 company and each contract between a license holder and a client
11-24 company or assigned employee shall clearly identify the name of the
11-25 license holder. A proposal or contract may also identify the trade
11-26 name, trademark, service mark, or parent company name of the
11-27 license holder. A license holder may use written materials
12-1 including forms, benefit information, letterhead, and business
12-2 cards that bear only the trade name, trademark, service mark, or
12-3 parent company name of the license holder.
12-4 SECTION 12. Section 91.019, Labor Code, is amended to read
12-5 as follows:
12-6 Sec. 91.019. LIMITED LICENSE. (a) The commissioner by rule
12-7 shall provide for the issuance of a limited license to [for] a
12-8 person who seeks to offer [offers] limited staff leasing services
12-9 in this state and is domiciled [primarily engaged in offering
12-10 staff leasing services] in another state and licensed or registered
12-11 as a staff leasing services company in the state in which the
12-12 person is domiciled. [The principal place of business of a person
12-13 offering staff leasing services and who applies for a license under
12-14 this section must be located in a state other than this state.]
12-15 (b) For purposes of this section, a staff leasing services
12-16 company is considered to be offering [person offers] limited staff
12-17 leasing services if the staff leasing services company:
12-18 (1) [person] employs fewer than 50 [20] assigned
12-19 employees in this state at any one time;
12-20 (2) does not provide assigned employees to a client
12-21 company based or domiciled in this state; and
12-22 (3) does not maintain an office in this state or
12-23 solicit client companies located or domiciled in this state.
12-24 (c) A staff leasing services company that offers [person
12-25 offering] limited staff leasing services shall complete the
12-26 application forms and pay the fees for a limited license as
12-27 prescribed by the department. A limited license is valid for one
13-1 year from the date of issuance and may be renewed annually on
13-2 submission of a renewal application and payment of the required
13-3 fees [must comply with all provisions of this chapter with respect
13-4 to those services performed within this state].
13-5 (d) The department may use information obtained from
13-6 regulatory agencies in other states in evaluating an applicant for
13-7 a limited license.
13-8 SECTION 13. Section 91.020(a), Labor Code, is amended to
13-9 read as follows:
13-10 (a) The department may take disciplinary action against a
13-11 license holder on any of the following grounds:
13-12 (1) being convicted or having a controlling person of
13-13 the license holder who is convicted of:
13-14 (A) bribery, fraud, or intentional or material
13-15 misrepresentation in obtaining, attempting to obtain, or renewing a
13-16 license;
13-17 (B) a crime that relates to the operation of a
13-18 staff leasing service or the ability of the license holder or any
13-19 controlling person of the license holder to operate a staff leasing
13-20 service;
13-21 (C) a crime that relates to the classification,
13-22 misclassification, or under-reporting of employees under Subtitle
13-23 A, Title 5;
13-24 (D) a crime that relates to the establishment or
13-25 maintenance of a self-insurance program, whether health insurance,
13-26 workers' compensation insurance, or other insurance; or
13-27 (E) a crime that relates to fraud, deceit, or
14-1 misconduct in the operation of a staff leasing service;
14-2 (2) engaging in staff leasing services or offering to
14-3 engage in the provision of staff leasing services without a
14-4 license;
14-5 (3) transferring or attempting to transfer a license
14-6 issued under this chapter;
14-7 (4) violating this chapter or any order or rule issued
14-8 by the department or commissioner under this chapter;
14-9 (5) failing after the 31st day after the date on which
14-10 a felony conviction of a controlling person is final to notify the
14-11 department in writing of the conviction;
14-12 (6) failing to cooperate with an investigation,
14-13 examination, or audit of the license holder's records conducted by
14-14 the license holder's insurance company or the insurance company's
14-15 designee, as allowed by the insurance contract or as authorized by
14-16 law by the Texas Department of Insurance;
14-17 (7) failing after the 31st day after the effective
14-18 date of a change in ownership, principal business address, or the
14-19 address of accounts and records to notify the department and the
14-20 Texas Department of Insurance of the change;
14-21 (8) failing to correct any tax filings or payment
14-22 deficiencies within a reasonable time as determined by the
14-23 commissioner;
14-24 (9) refusing, after reasonable notice, to meet
14-25 reasonable health and safety requirements within the license
14-26 holder's control and made known to the license holder by a federal
14-27 or state agency;
15-1 (10) being delinquent in the payment of the license
15-2 holder's insurance premiums other than those subject to a
15-3 legitimate dispute;
15-4 (11) being delinquent in the payment of any employee
15-5 benefit plan premiums or contributions other than those subject to
15-6 a legitimate dispute;
15-7 (12) knowingly making a material misrepresentation to
15-8 an insurance company or to the department or other governmental
15-9 agency;
15-10 (13) failing to maintain the net worth requirements
15-11 required under Section 91.014; or
15-12 (14) using staff leasing services to avert or avoid an
15-13 existing collective bargaining agreement.
15-14 SECTION 14. Section 91.021, Labor Code, is amended to read
15-15 as follows:
15-16 Sec. 91.021. SANCTIONS [DISCIPLINARY PROCEDURES;
15-17 REINSTATEMENT]. (a) On a finding that a ground for disciplinary
15-18 action exists under one or more provisions of Section 91.020(a),
15-19 the department shall impose administrative sanctions as provided by
15-20 Section 17, Article 9100, Revised Statutes [may:]
15-21 [(1) deny an application for a license;]
15-22 [(2) revoke, restrict, or refuse to renew a license;]
15-23 [(3) impose an administrative penalty in an amount not
15-24 less than $1,000 for each violation, but not more than $50,000;]
15-25 [(4) issue a reprimand; or]
15-26 [(5) place the license holder on probation for the
15-27 period and subject to conditions that the department specifies].
16-1 (b) On revocation of a license, the license holder shall
16-2 immediately return the revoked license to the department.
16-3 (c) Disciplinary action may be taken, an application for a
16-4 new or renewal license may be denied, a license may be revoked, or
16-5 a determination that a controlling person is unqualified may be
16-6 made by the department only subject to Chapter 2001, Government
16-7 Code, with notice and an opportunity for hearing provided to the
16-8 affected applicant, license holder, or controlling person.
16-9 [(d) If a license is revoked or renewal is denied, the
16-10 affected license holder may request a reinstatement hearing after a
16-11 minimum of one year. The department may reinstate or renew the
16-12 license only if the cause of the revocation or nonrenewal has been
16-13 corrected.]
16-14 SECTION 15. Section 91.031, Labor Code, is amended by adding
16-15 Subsection (c) to read as follows:
16-16 (c) The written notice required by Subsection (b) must be
16-17 given to each assigned employee not later than the first payday
16-18 after the date on which that individual becomes an assigned
16-19 employee.
16-20 SECTION 16. Section 91.032, Labor Code, is amended to read
16-21 as follows:
16-22 Sec. 91.032. CONTRACT REQUIREMENTS. (a) A contract between
16-23 a license holder and a client company must provide that the
16-24 license holder:
16-25 (1) reserves a [the] right of direction and control
16-26 over employees assigned to a client's worksite [worksites];
16-27 (2) assumes responsibility for the payment of wages to
17-1 the assigned employees without regard to payment [payments] by the
17-2 client to the license holder;
17-3 (3) assumes responsibility for the payment of payroll
17-4 taxes and collection of taxes from payroll on assigned employees;
17-5 (4) retains a [the] right to hire, fire, discipline,
17-6 and reassign the assigned employees; and
17-7 (5) retains a [the] right of direction and control
17-8 over the adoption of employment and safety policies and the
17-9 management of workers' compensation claims, claim filings, and
17-10 related procedures.
17-11 (b) Notwithstanding any other provision of this chapter, a
17-12 client company is responsible for the exercise of direction and
17-13 control over an assigned employee as necessary to conduct the
17-14 business of the client company and without which the client company
17-15 would be unable to:
17-16 (1) conduct its business;
17-17 (2) discharge any applicable fiduciary responsibility;
17-18 or
17-19 (3) comply with any applicable license requirement or
17-20 regulatory or statutory requirement.
17-21 (c) A client company is solely responsible for:
17-22 (1) the goods and services produced by the client
17-23 company; and
17-24 (2) the acts or omissions of an employee assigned to
17-25 the client company.
17-26 SECTION 17. Section 91.041(b), Labor Code, is amended to
17-27 read as follows:
18-1 (b) With respect to any insurance or benefit plan provided
18-2 by a license holder for the benefit of its assigned employees, a
18-3 [Each] license holder shall disclose the following information to
18-4 the department, each client company, and its assigned employees
18-5 [information relating to any insurance or benefit plan provided for
18-6 the benefit of its assigned employees. The information must
18-7 include]:
18-8 (1) the type of coverage;
18-9 (2) the identity of each insurer for each type of
18-10 coverage;
18-11 (3) the amount of benefits provided for each type of
18-12 coverage and to whom or in whose behalf benefits are to be paid;
18-13 (4) the policy limits on each insurance policy; and
18-14 (5) whether the coverage is fully insured, partially
18-15 insured, or fully self-funded.
18-16 SECTION 18. Section 91.044, Labor Code, is amended to read
18-17 as follows:
18-18 Sec. 91.044. UNEMPLOYMENT TAXES; PAYROLL. (a) A license
18-19 holder is the employer of an assigned employee for purposes of
18-20 Subtitle A, Title 4, and Chapter 61. In addition to any other
18-21 reports required to be filed by law, a license holder shall report
18-22 quarterly to the Texas Workforce [Employment] Commission on a form
18-23 prescribed by the Texas Workforce [Employment] Commission the name,
18-24 address, telephone number, federal income tax identification
18-25 number, and classification code as described in the "Standard
18-26 Industrial Classification Manual" published by the United States
18-27 Office of Management and Budget of each client company.
19-1 (b) [On contracting with a client company, a license holder
19-2 shall notify the Texas Employment Commission of the contract. The
19-3 notification shall be made in the form prescribed by the Texas
19-4 Employment Commission.]
19-5 [(c)] For purposes of Subtitle A, Title 4, in the event of
19-6 the termination of a contract between a license holder and a client
19-7 company or the failure by a staff leasing entity to submit reports
19-8 or make tax payments as required by that subtitle, the contracting
19-9 client company shall be treated as a new employer without a
19-10 previous experience record unless that client company is otherwise
19-11 eligible for an experience rating.
19-12 SECTION 19. Section 91.048, Labor Code, is amended to read
19-13 as follows:
19-14 Sec. 91.048. REQUIRED INFORMATION. Each license holder
19-15 shall:
19-16 (1) maintain adequate books and records regarding the
19-17 license holder's duties and responsibilities;
19-18 (2) maintain and make available at all times to the
19-19 commissioner the following information, which shall be treated as
19-20 proprietary and confidential and is exempt from disclosure to
19-21 persons other than other governmental agencies having a reasonable,
19-22 legitimate purpose for obtaining the information:
19-23 (A) the correct name, address, and telephone
19-24 number of each client company;
19-25 (B) each client company contract; and
19-26 (C) a listing by classification code as
19-27 described in the "Standard Industrial Classification Manual"
20-1 published by the United States Office of Management and Budget, of
20-2 each client company;
20-3 (3) notify the department of any addition or deletion
20-4 of a controlling person as listed on the license application or
20-5 renewal form by providing the name of the person not later than the
20-6 45th [30th] day after the date on which the person is added or
20-7 deleted as a controlling person; and
20-8 (4) provide a [notarized] biographical history to the
20-9 department in connection with the addition of a new controlling
20-10 person.
20-11 SECTION 20. Section 91.061, Labor Code, is amended to read
20-12 as follows:
20-13 Sec. 91.061. PROHIBITED ACTS. A person may not:
20-14 (1) engage in or offer staff leasing services without
20-15 holding a license under this chapter as a staff leasing services
20-16 company;
20-17 (2) use the name or title "staff leasing company,"
20-18 "employee leasing company," "licensed staff leasing company," [or]
20-19 "staff leasing services company," "professional employer
20-20 organization," or "administrative employer" or otherwise represent
20-21 that the entity is licensed under this chapter unless the entity
20-22 holds a license issued under this chapter;
20-23 (3) represent as the person's own the license of
20-24 another person or represent that a person is licensed if the person
20-25 does not hold a license;
20-26 (4) give materially false or forged evidence to the
20-27 department in connection with obtaining or renewing a license or in
21-1 connection with disciplinary proceedings under this chapter; or
21-2 (5) use or attempt to use a license that has expired
21-3 or been revoked.
21-4 SECTION 21. Subchapter C, Chapter 201, Labor Code, is
21-5 amended by adding Section 201.030 to read as follows:
21-6 Sec. 201.030. STAFF LEASING SERVICES COMPANY. For the
21-7 purposes of this subtitle, "staff leasing services company" has the
21-8 meaning assigned by Section 91.001.
21-9 SECTION 22. Section 207.045, Labor Code, is amended by
21-10 adding Subsection (i) to read as follows:
21-11 (i) An assigned employee of a staff leasing services company
21-12 is considered to have left the assigned employee's last work
21-13 voluntarily without good cause connected with the work if the
21-14 assigned employee does not contact the staff leasing services
21-15 company for reassignment. An assigned employee is not considered to
21-16 have left work voluntarily without good cause connected with the
21-17 work under this subsection unless the assigned employee has been
21-18 advised:
21-19 (1) that the assigned employee is obligated to contact
21-20 the staff leasing services company on dismissal by a client
21-21 company; and
21-22 (2) the assigned employee may be denied unemployment
21-23 compensation benefits if the assigned employee fails to contact the
21-24 staff leasing services company as provided by Subdivision (1).
21-25 SECTION 23. Chapter 91, Labor Code, as amended by this Act,
21-26 applies only to a staff leasing services company license that is
21-27 issued or renewed on or after the effective date of this Act.
22-1 SECTION 24. Section 207.045, Labor Code, as amended by this
22-2 Act, applies only to a claim for unemployment compensation benefits
22-3 that is filed with the Texas Workforce Commission on or after the
22-4 effective date of this Act. A claim filed before that date is
22-5 governed by the law in effect on the date that the claim was filed,
22-6 and the former law is continued in effect for that purpose.
22-7 SECTION 25. This Act takes effect September 1, 1997.
22-8 SECTION 26. The importance of this legislation and the
22-9 crowded condition of the calendars in both houses create an
22-10 emergency and an imperative public necessity that the
22-11 constitutional rule requiring bills to be read on three several
22-12 days in each house be suspended, and this rule is hereby suspended.